Comments on: ETFs jump the shark, FactorShares edition http://blogs.reuters.com/felix-salmon/2011/02/24/etfs-jump-the-shark-factorshares-edition/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Loebner http://blogs.reuters.com/felix-salmon/2011/02/24/etfs-jump-the-shark-factorshares-edition/comment-page-1/#comment-24435 Wed, 02 Mar 2011 09:29:12 +0000 http://blogs.reuters.com/felix-salmon/?p=7438#comment-24435 “Some investments, in things like hedge funds or private-equity funds, are considered so risky that you need to be qualified to buy them..”
——————-
While at the same time states are vigorously pushing lotteries, which are designed to separate the lower class from their money.

]]>
By: FosterBoondog http://blogs.reuters.com/felix-salmon/2011/02/24/etfs-jump-the-shark-factorshares-edition/comment-page-1/#comment-24320 Fri, 25 Feb 2011 15:41:01 +0000 http://blogs.reuters.com/felix-salmon/?p=7438#comment-24320 @bxg12 – I guess I missed the memo.

http://www.cartoonbank.com/1998/damn-it- hopkins-didnt-you-get-yesterdays-memo/in vt/117313/

]]>
By: bxg12 http://blogs.reuters.com/felix-salmon/2011/02/24/etfs-jump-the-shark-factorshares-edition/comment-page-1/#comment-24314 Fri, 25 Feb 2011 04:13:37 +0000 http://blogs.reuters.com/felix-salmon/?p=7438#comment-24314 FosterBoondog, did you miss the memo?
Suppose I’m in my 70’s and decide that I need to cash out some of my investment securities to fund my retirement expenses. But once *I* make that decision, I clearly _NEED_ that trade to happen … intraday??? … not just that, but NOW. Right NOW. Waiting till the end of the day would be absurd, inefficient, criminal, anti-capitalist … basically, robbery. Every SINGLE MICROSECOND from the time I decide to do this until the trade occurs is an abomination, and I’m thrilled that all the brightest minds in the country spend their (well-compensated, deservedly so) lives making sure my decision is enacted as instantly as the best of human technology allows. Go America!

]]>
By: TFF http://blogs.reuters.com/felix-salmon/2011/02/24/etfs-jump-the-shark-factorshares-edition/comment-page-1/#comment-24310 Fri, 25 Feb 2011 00:47:52 +0000 http://blogs.reuters.com/felix-salmon/?p=7438#comment-24310 The nice thing about an ETF for a frequent trader is that you can buy or sell at any time instead of submitting an order that won’t clear until the closing bell.

The (typically) lower fees benefit long-term investors.

Otherwise not that much of a difference.

]]>
By: FosterBoondog http://blogs.reuters.com/felix-salmon/2011/02/24/etfs-jump-the-shark-factorshares-edition/comment-page-1/#comment-24307 Thu, 24 Feb 2011 22:42:24 +0000 http://blogs.reuters.com/felix-salmon/?p=7438#comment-24307 I’ve never been clear on the benefits of ETFs over index mutual funds, if both are available for the same asset class. How many investors really need to be able to trade their positions intraday? There seem to be some asset classes that, perhaps for legal reasons, are better implemented via ETFs – e.g., commodities, where the use of derivatives in an ETF simplifies positioning, but is (perhaps) not possible in a ’40-Act fund. But that’s a technicality. And for those who want to short a sector, obviously ETFs are pretty handy.

But here’s the thing – if someone really wants to make the bet embedded in these long/short ETFs, what’s wrong with providing a vehicle for them? These things don’t look like a scam – they’re completely above-board and transparent about what they’re doing. So what’s the big deal for consenting adults?

]]>
By: takloo http://blogs.reuters.com/felix-salmon/2011/02/24/etfs-jump-the-shark-factorshares-edition/comment-page-1/#comment-24305 Thu, 24 Feb 2011 22:15:40 +0000 http://blogs.reuters.com/felix-salmon/?p=7438#comment-24305 ETFs are for lazy portfolio managers! ETFs create a disincentive to invest the old fashion way of research and analysis.

ETFs probably provide liquidity and capital mobility in some cases (e.g. emerging market ETFs) but other than that, they are just another avenue for fee-related income.

]]>
By: KenG_CA http://blogs.reuters.com/felix-salmon/2011/02/24/etfs-jump-the-shark-factorshares-edition/comment-page-1/#comment-24303 Thu, 24 Feb 2011 22:06:18 +0000 http://blogs.reuters.com/felix-salmon/?p=7438#comment-24303 Not all new products qualify as innovative. And most financial “products” (a better term would be “scheme” or “scam”) are certainly not innovative, except maybe from the seller’s point of view.

If I were to expand on Paul Volcker’s comment that the ATM has been the only real financial innovation, I would add single use credit card numbers (unfortunately not available to everyone) and those new mobile phone apps that let you deposit checks by taking a photo of them with your smartphone (also not available to everyone). Other than that, most financial “products” that people call innovative are shell games.

]]>